Investing.com -- Figure AI, an American startup specializing in humanoid robots, is in discussions to secure $1.5 billion in funding, which could elevate its valuation to $39.5 billion, Bloomberg reported on Friday.
The funding round is expected to be led by Align (NASDAQ:ALGN) Ventures and Parkway Venture Capital, per Bloomberg. Terms have not been finalized and could still change, the report said.
This potential valuation marks a significant leap from the company’s $2.6 billion valuation in a deal last year. Figure AI’s previous backers include major tech players such as Microsoft (NASDAQ:MSFT), OpenAI, Nvidia (NASDAQ:NVDA), and Amazon (NASDAQ:AMZN) founder Jeff Bezos.
In a recent LinkedIn update, Figure CEO Brett Adcock (JO:AIPJ) shared ambitious production plans, stating the company aims to deliver 100,000 robots over the next four years.
Investor interest in the company has grown partly due to recent advancements in its robots’ cognitive capabilities, which have accelerated expectations for the technology’s broader adoption. Figure now anticipates these machines could be ready for household use within a few years.
The humanoid robotics space has seen increasing attention from investors. Electric vehicle (EV) giant Tesla (NASDAQ:TSLA) is developing a bipedal robot called Optimus, while Meta Platforms (NASDAQ:META) is also looking to expand into the field, including collaborations with Figure and Unitree Robotics, as reported by Bloomberg.
“While humanoids are just one of many manifestations of embodied AI, the form factor is getting a high amount of attention given the universal/open ended nature of its tasks and ability to learn through human and simulation,” Morgan Stanley (NYSE:MS) analysts led by Adam Jonas said in a note.
Although a successful Figure would become competition for Tesla, analysts believe “this is not a ’winner take-all’ market similar to other industrial end-markets such as autos, machinery, etc.”
“In our view, news of Figure’s fundraising will only benefit perception around the legitimacy of this end market, providing investors another reason to consider humanoids as they contemplate the upside for TSLA shares,” they added.